Milanović: We are converting Swiss franc loans into euros

Croatian Prime Minister Zoran Milanović reminded that the Government has been working on solving the problem of debtors in Swiss francs for two and a half years - from reducing interest rates to fixing the exchange rate. He sees the source of the problem in the irresponsibility of previous administrations, which, as he says, were guided by the "we'll figure it out later" philosophy, reports the Patria News Agency.

"We decided to convert Swiss franc loans into euro loans. We took many details into account so that no one would feel disadvantaged, especially loan users in other currencies. One must always weigh personal responsibility against unforeseen circumstances that have led many families into difficult situations," says Milanović.

"It was possible to stick with the existing solution of 'freezing' the exchange rate at 6.39 kuna. Then to monitor it, and for the Government to react if it started to fall below 6.39. Precisely to take this off the agenda and allow people to focus normally on work, on the future, we decided on this solution, about which Deputy Prime Minister Branko Grčić and Finance Minister Boris Lalovac will say more today," Milanović stated.

The solution of conversion into euros aims to not disadvantage anyone, emphasizes the Prime Minister, who is not afraid of the banks' reaction and points out - the Government leads Croatia.

"Banks will lose something, but they will also gain something in tax relief. That's why it wasn't done hastily. Care was taken for banks to have their purpose; if shareholders do not achieve expected reasonable profit, they will transfer money elsewhere, for example, to government bonds. So, it's not that simple. That's why every detail is considered, but we are here to protect Croatian citizens, not to show muscles to Croatian banks," Milanović said, writes Index.